Indian Rupee appreciated by 0.15 percent in yesterday’s trading session as US Federal Reserve Chair Yellen signaled gradual pace of rate hike. Further, rise in risk appetite in the domestic markets and ease in inflation supported Rupee. India CPI eased to 1.54 percent in June 2017 compared to 2.18 percent in May 2017.
Benchmark stock index 50 shares Nifty Index increased by 0.77 percent to 9891.70. However, sharp gain was prevented on FII outflows from local shares. FII’s net sold stocks worth Rs 59.15 crores yesterday as per provisional data from NSE. In Intraday Indian Rupee touched a high of 64.3913 and closed at 64.445 against Dollar.
Indian Rupee is expected to trade with negative bias as traders will remain cautious ahead of Inflation data from US. Investors are concerned about tapering of liquidity after major central banks across the globe signaled a tighter monetary policy. Ease in inflation may provide room for Reserve Bank of India (RBI) to slash interest rates.
The gap between US and India bond yields is narrowing. Rise in US yield prompts foreign investors to sell their Indian market holdings. USDINR July expected to trade in a range between 64.40 on lower side to 64.85 on higher side with sideways up trend.
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